8/31/2008

Does the military hold the dollar up?

My assessment is that 90% of the value of the U.S. dollar comes from the U.S. military. After we had our satellite systems in place, Cheney said “deficits don’t matter.” The US debt and deficit financing is no longer a debt system. It is a global taxation system....

Global treasuries and sovereign wealth funds, central banks and a variety of large institutions buy Treasury securities or hold dollars not because there is economic value behind them or because these financial assets are sound fiscally or in terms of credit.... If they don’t buy, they and their population will be subject to a wide variety of demonstrations of physical and financial force that will result in loss of life.